All Forum Posts by: Danny Day

Wondering whats going on in your local market.
Right now Houston is HOT.. very low supply of homes on the market..
Houses hitting the market and getting 3-4 contracts within 24 hours.

I believe there is a 3.4 month supply on the market right now, with lots of booming demand.

I've done 10 deals this month alone

I hear Vegas, Orlando are hot areas as well.

Thomas Manuel I think you're making the right decision. Good luck with your sale.

Welcome to BiggerPockets

Checking in...

Thomas Mickelson, welcome to BP. You will find all the answers you need here.

With that being said, I would recommend you spend some time reading up on the forums about calculating ARV, cost estimation, the 70% rule and the 50% rule.

Flipping houses does seem like its an instant return on your money, and sometimes it can be. There is another side of the coin, that is most investors hope to break even on their first (few) deals.

What is your background / experience in construction, remodeling, etc?

I would find a real estate agent in your area to get information from the MLS on areas that have low cost of ownership & high rental rates. If it was me, I'd look to find a nice single family rental that needs some minor work.. that you can capture some equity on the purchase.

Do the repairs.. get familiar with the home.. the process.. the fees.. the hidden fees.. the hidden repairs.. the tenants.. and start cash flowing on your house.

Then do some more research and maybe try to rehab a house for sale.

Good luck..

Danny

Cool thread, I wonder about this all the time. I bought my personal home (and some rentals) at the very bottom of our market in 2010. I've seen a significant increase in the market (inventory, price increases) since.

My plan is to follow what Buffett says.. "Be Fearful When Others Are Greedy and Greedy When Others Are Fearful". As someone had earlier mentioned, once people who have no knowledge of real estate become greedy then its time to get out.

My exit strategy is to sell my personal home at the peak and rent all the way down, and buy at (or near) the bottom again.

Will sell off rental properties as well to buy more properties at the bottom.

Jeff Greenberg, what size multi-family are you looking at in the Houston area? From what I've seen, Houston does not have near the amount of 1-4, 10, 20 unit complexes that Austin or San Marcos can offer. Maybe I'm missing something, but if you want to msg me I am interested in hearing more about the better returns in the Houston area.

Al Sousa , when you say you're having trouble with 65-70% ARV, where are you finding these deals?

Everything you need to know is on this website, but if you want a textbook example on how you should run things I would suggest Flip: How to Find, Fix, and Sell Houses for Profit.

This is really the only book I would get on the subject of rehabbing. Maybe pick up a book on how to inspect a house as well.

I work in real estate development / new home construction now. Way more profitable ( and time consuming! )